• Title/Summary/Keyword: economic impacts effect

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Local Autonomy, National Economy and Local Public Finance (지방자치(地方自治)와 국민경제(國民經濟) 및 지방재정(地方財政))

  • Lee, Kye-sik
    • KDI Journal of Economic Policy
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    • v.13 no.2
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    • pp.41-67
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    • 1991
  • Local autonomy of Korea's lower-level local council has been reinstated following elections last March for the first time in thirty years. Last June, we had elections for the upper-level local council. Mayors, governors, and administrative chiefs of cities, provinces and other local government bodies are slated for elections in the first half of next year. The impacts of local autonomy are taking effect in not only the political sphere, but also the administrative and economic spheres. In fact, it seems that some modification of all economic policy making and administration is inevitable. Since the initiation of local autonomy, in order to make the economy work more efficiently, it has become quite important to examine the impact of local autonomy on the national economy. The areas of local autonomy include independent legislative power, administrative power, organizational power, and most important of all, the independent public financial power of the local governments. The purpose of this paper is to examine the effects of local autonomy on the national economy and ways of enhancing the role of local public finance to facilitate settlement and development of the local autonomy system. Local autonomy will contribute to the continuous growth of our economy, allow balanced development, and generate greater efficiency. However, local autonomy can also incur economic costs causing at times short-term price instability, inefficient resource allocation, through tax competition and tax exporting, and insolvency of local government due to abusive fiscal operation. To reduce these side effects, different alternatives must be considered. Local autonomy systems generally provide more efficient resource allocation than centralization. But in the model used in Chapter 3 of this paper, the relative efficiencies of both local autonomy and centralization are determined by comparing the elasticity of substitution between national public goods and local public goods. If the elasticity of substitution is bigger than one, centralization provides a more efficient resource allocation. The development of local autonomy could be attained through democratization of the local public finance system including the following three propositions. I) The independence of public financial power of local governments should be established over central government. Furthermore, a democratically operated scheme of intergovernmental fiscal coordination is especially necessary. 2) In the operation of local finance, direct democracy is needed to induce the voluntary participation of local residents. The residents can take part in planning both the local budget and the development of the community. To attain this goal, all the results of local finance operations should be made public. 3) Among economic ill-effects of the local autonomy system, the most serious one is the possibility of insolvency of local governments. Therefore, measures to limit abusive spending by the local governments should be introduced, such as the fiscal restraints system adopted in the United States.

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Minimum Wage and Productivity: Analysis of Manufacturing Industry in Korea (최저임금과 생산성: 우리나라 제조업의 사례)

  • Kim, Kyoo Il;Ryuk, Seung Whan
    • Economic Analysis
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    • v.26 no.1
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    • pp.1-33
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    • 2020
  • Recent discussions about a minimum wage increase (MWI) and its influence on the economy have mainly focused on the quantitative aspects, such as labor costs and employment. However, concerning the qualitative aspects, an MWI could have positive effects by enhancing firm productivity and crowding out marginal firms from the market. These positive effects of an MWI can offset, to some extent, its potential negative effects - increasing labor costs and decreasing employment, among others. In this regard we empirically examine the impact of an MWI on firm productivity (total factor productivity). Using firm level panel data from the manufacturing industry in Korea, we calculate the influence rates of a minimum wage by sector and by firm size (number of workers), and analyze its effects on firm productivity. In particular, the production functions of the firms are estimated by taking into account endogeneity among the input factors, in order to resolve the drawbacks of existing studies - underestimating the capital factor coefficient and overestimating the labor factor coefficient. This study finds that the influences of an MWI on wages, employment, and productivity are substantially different across sectors and firm sizes. While an MWI has shown to have positive influences on productivity growth in the manufacturing industry as a whole, each sector demonstrates a different direction of effect, and the degree of productivity change also varies by sector. The impacts of an MWI on firm productivity are generally estimated to be more negative for smaller firms, but in some sectors the effects are found to be positive. In addition, the wage increases resulting from an MWI seem to cause a productivity enhancement across all sectors in the manufacturing industry. The policy implications of this study are as follows. Considering the empirical findings that an MWI causes an increase in productivity in many sectors of the manufacturing industry, it would be desirable to take into consideration not only the negative side effects but also the positive effects of an MWI when designing any future minimum wage policy. Moreover, in spite of there being a uniform minimum wage, this study finds that the diverse influence rates of a minimum wage across firms have different impacts on wages, employment, and productivity across sectors or firm size. This finding could be conducive to discussions about differentiation among minimum wage schemes by sector or firm size.

The Association of Oral Impacts on Daily Performances for Children (C-OIDP), Oral Health Condition and Oral Health-Related Behaviors (어린이 일상생활구강영향지수(C-OIDP)와 구강관리 및 구강건강행태와의 관련성)

  • Jo, Hwa-Young;Jung, Yun-Sook;Park, Dong-Ok;Lee, Young-Eun;Choi, Youn-Hee;Song, Keun-Bae
    • Journal of dental hygiene science
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    • v.16 no.3
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    • pp.242-248
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    • 2016
  • The purposes of this study were to investigate the factors affection the Oral Impacts on Daily Performances for Children (C-OIDP) in elementary and middle school students, and identify the association between oral health-related behaviors, oral health condition and C-OIDP. A cross-sectional study was conducted in three schools in Incheon, Asan, Korea. A total of 175 selected children were interviewed by a trained examiner using a questionnaire. Oral Health Related Quality of Life was assessed by the Korean version of C-OIDP. Socio-economic characteristics, oral health-related behaviors, oral health condition and C-OIDP were verified using the questionnaire. ANOVA analysis was performed to determine the oral health and C-OIDP, and multiple regression analysis was performed to determine the factors affecting the C-OIDP. The activities with the greatest effect were eating (28.0%), cleaning teeth (22.9%), and smiling (18.9%). In the logistic regression model, the high item score of C-OIDP was associated with experiencing dental caries and gum pain in the past month. The more the C-OIDP prevalence item, the more the fillng deciduous tooth surface (fs) (p=0.024), caries experienced deciduous tooth surface (dfs) (p=0.049), total caries tooth surface (ds+DS) (p=0.021), and total caries experienced tooth surface (dfs+DMFS) (p=0.047). It can be concluded that the factors affecting C-OIDP are fs, dfs, dfs+DMFS, and gingival pain. Based on these results, we can improve C-OIDP to advance preventive practice.

The Impact of Bilateral Free Trade Agreements on International Trade Volume of Bulk Shipment at the Port of Korea: Focusing on Korea's FTA with Singapore, India, and United States (한·단일국가 FTA체결에 따른 우리나라 벌크물동량 영향분석 : 싱가포르, 인도, 미국을 중심으로)

  • Lee, Kyong-Han;Choi, Nayoung-Hwan
    • Journal of Navigation and Port Research
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    • v.40 no.6
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    • pp.485-494
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    • 2016
  • The primary purpose of this study is to analyze the impact and determinants of bilateral Free Trade Agreements on international total bulk shipment trade volume at the port of Korea using the Panel Gravity Model. The model estimates the aggregated panel data of exports and imports (excluding transshipment) as a dependent variable during the period from 1996 to 2015. GDP, GDP per capita, distances between bilateral countries, and FTA dummies are included as independent variables. And the economic integration of FTAs including ASEAN+3 and NAFTA3 countries were used as dummy variables. Study results show that GDP and GDP per capita have positive impacts on bulk shipment trade volume at the port of Korea. In addition, Korea's bilateral FTAs with Singapore, India and the United States have positive effects on total bulk trade volume in Korea. This is the so called trade creation effect. On the other hand, ASEAN+3 and NAFTA have negative effects on the total bulk trade. This is the so called trade diversion effect. Also, the distance between Korea and its trade partners has a negative impact. These findings provide insights for: further academic research, site operators who work in related trade and maritime sectors, and policy makers engaged in port and maritime operations. The results can be used to develop strategies for maximizing bulk port throughput.

A Study of the Impacts of Strategic Orientation on the Performance in Technology-based Start-ups (기술창업시 전략적 지향성이 창업성과에 미치는 영향)

  • Jang, Dong-Kwan;Song, In-Am;Hwang, Hee-Joong
    • Journal of Distribution Science
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    • v.11 no.10
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    • pp.37-45
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    • 2013
  • Purpose - Appropriate response to the fast changing economic environment determines SMEs' competiveness in the era of globalization and open market and, therefore, government policies to strengthen SME's competitiveness will be very important in the future. It is time to investigate the element of strategic orientation that is necessary for strengthening the competitiveness of SMEs, and its effect on the success of a business start-up. This study analyzes the network orientation in addition to existing strategic orientation, and focuses on price and quality management capability as mediators for strategic orientation and outcomes of business start-ups. Research design/data/methodology - The orientations of technology-based business founders were classified into market, technology, network, and entrepreneurial orientation. We then investigated the effect of these orientations on product price and quality management capability, as well as the influence of price and quality management capability on the outcome of a business start-up. This study is based on the nation-wide survey of the founders and members of technology-based business establishments. The survey was administered to 300 selected companies via email for a period of one month, at the end of which 175 companies replied with valid answers. Further, for effective and objective research, we used SPSS 14.0 and Amos 7.0 for structural equation modeling assumptions and hypothesis verification. Results - Except for entrepreneurial orientation, the other three orientations, namely, technology, market, and network orientations, affect the price management capability according to our results. The price management capability relates significantly with the sales and customer satisfaction. Especially, technology orientation is the core competency of start-ups that affects price and quality management capabilities. However, technology and entrepreneurial orientation do not influence the outcome of business start-ups, but affect their quality management capabilities. Conclusions - This study confirms that the strategic orientation affects product price as well as quality management capabilities, to introduce new products and achieve successful outcomes. In conclusion, new business founders face the dilemma of trade-off between price and quality in the planning stage of new product development. In particular, price management capability directly affects the outcome. Therefore, price management is more important for a successful start-up than quality management. Especially, during the initial stages of starting up a new business, price management capability entails following the market-leading company, or price penetration strategy. In this stage, price management is dependent on the information from outside rather than on the founder's decision, and it directly affects sales performance and customer satisfaction. In contrast, quality management capability is directly related to the technology capability and market experience of founders. In this case, subjective and proactive decision making is required for differentiation and development of demand in the niche market, which does not directly influence the sales performance and customer satisfaction.

A Study on the Analysis of Energy Voucher Effects Using Micro-household Data (가구부문 미시자료를 활용한 에너지바우처 효과 추정에 관한 연구)

  • Lee, Eun Sol;Park, Kwang Soo;Lee, Yoon;Yoon, Tae Yeon
    • Environmental and Resource Economics Review
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    • v.28 no.4
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    • pp.527-556
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    • 2019
  • In Korea, nearly 100 billion won is spent annually under the name of energy voucher on 600,000 households for the last five years, and this is a unique case and hard to monitor worldwide. Therefore, no studies have been conducted to assess impacts of the energy voucher on energy consumption and cost burden alleviation for beneficiaries. This paper aims to demonstrate the effectiveness of energy vouchers in terms of energy expense. The propensity score matching was conducted on samples of low-income households based on the Korea Welfare Panel. Then, simple Difference-In-Differences and Fixed-Effect Difference-In-Differences models were applied to estimate the effect of energy vouchers. In results, the beneficiaries of energy vouchers would spend an additional 4,371~4,870 won per month on energy consumption. The ratio is equivalent to 51.9~57.7 percent of the aid, which is also the highest when compared with 23~56 percent of U.S. Food Stamp. In terms of energy welfare, voucher payment could become one of the best management practices. However, identifying the blind spots as non-reciprocal households and expanding the differential support mechanism that reflects the energy consumption environment should be solved in the future.

Impacts of Social Distancing for COVID-19 on Urban Space Use in Seoul (COVID-19 사회적 거리두기가 도시공간이용에 미치는 영향)

  • Park, Hong Il;Lee, Sangkyeong
    • Journal of the Korean Society of Surveying, Geodesy, Photogrammetry and Cartography
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    • v.39 no.6
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    • pp.457-467
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    • 2021
  • This paper aims to analyze changes in urban space use due to social distancing measures for COVID-19 using de facto population data in Seoul during daytime, which is estimated by Seoul Metropolitan Government and telecommunication company of KT using public big data and LTE signal data. The result of kernel density estimation and spatial autocorrelation analysis shows that the distribution patterns of de facto population in 2019 and 2020 were generally similar. This is a result of showing that the government's social distancing measures enabled a certain level of normal activities while suppressing the spread of COVID-19. However, analyzing de facto population subtracting 2019 from 2020 showed different results at the micro level. De facto population decreased in commercial areas but increased in residential areas. This means that COVID-19 social distancing measures had spatially uneven effect. The results of analyzing the effect of regional, land use, economic, educational, and accessibility characteristics on the changes of de facto population using spatial regression analysis are as follows. The higher the density of commercial facilities, the more businesses subject to regulations and schools and universities that require non-face-to-face classes, the more de facto population decreased. Conversely, it was found that de facto population increased in areas with many houses and parks due to telecommuting.

The Macroeconomic Impacts of Korean Elections and Their Future Consequences (선거(選擧)의 거시경제적(巨視經濟的) 충격(衝擊)과 파급효과(波及效果))

  • Shim, Sang-dal;Lee, Hang-yong
    • KDI Journal of Economic Policy
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    • v.14 no.1
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    • pp.147-165
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    • 1992
  • This paper analyzes the macroeconomic effects of elections on the Korean economy and their future ramifications. It measures the shocks to the Korean economy caused by elections by taking the average of sample forecast errors from four major elections held in the 1980s. The seven variables' Bayesian Vector Autoregression Model which includes the Monetary Base, Industrial Production, Consumption, Consumer Price, Exports, and Investment is based on the quarterly time series data starting from 1970 and is updated every quarter before forecasts are made for the next quarter. Because of this updating of coefficients, which reflects in part the rapid structural changes of the Korean economy, this study can capture the shock effect of elections, which is not possible when using election dummies with a fixed coefficient model. In past elections, especially the elections held in the 1980s, $M_2$ did not show any particular movement, but the currency and base money increased during the quarter of the election was held and the increment was partly recalled in the next quarter. The liquidity of interest rates as measured by corporate bond yields fell during the quarter the election and then rose in the following quarter, which is somewhat contrary to the general concern that interest rates will increase during election periods. Manufacturing employment fell in the quarter of the election because workers turned into campaigners. This decline in employment combined with voting holiday produce a sizeable decline in industrial production during the quarter in which elections are held, but production catches up in the next quarter and sometimes more than offsets the disruption caused during the election quarter. The major shocks to price occur in the previous quarter, reflecting the expectational effect and the relaxation of government price control before the election when we simulate the impulse responses of the VAR model, imposing the same shocks that was measured in the past elections for each election to be held in 1992 and assuming that the elections in 1992 will affect the economy in the same manner as in the 1980s elections, 1992 is expected to see a sizeable increase in monetary base due to election and prices increase pressure will be amplified substantially. On the other hand, the consumption increase due to election is expected to be relatively small and the production will not decrease. Despite increased liquidity, a large portion of liquidity in circulation being used as election funds will distort the flow of funds and aggravate the fund shortage causing investments in plant and equipment and construction activities to stagnate. These effects will be greatly amplified if elections for the head of local government are going to be held this year. If mayoral and gubernatorial elections are held after National Assembly elections, their effect on prices and investment will be approximately double what they normally will have been have only congressional and presidential elections been held. Even when mayoral and gubernatorial elections are held at the same time as congressional elections, the elections of local government heads are shown to add substantial effects to the economy for the year. The above results are based on the assumption that this year's elections will shock the economy in the same manner as in past elections. However, elections in consecutive quarters do not give the economy a chance to pause and recuperate from past elections. This year's elections may have greater effects on prices and production than shown in the model's simulations because campaigners' return to industry may be delayed. Therefore, we may not see a rapid recall of money after elections. In view of the surge in the monetary base and price escalation in the periods before and after elections, economic management in 1992 should place its first priority on controlling the monetary aggregate, in particular, stabilizing the growth of the monetary base.

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The Effects of Intention Inferences on Scarcity Effect: Moderating Effect of Scarcity Type, Scarcity Depth (소비자의 기업의도 추론이 희소성 효과에 미치는 영향: 수량한정 유형과 폭의 조절효과)

  • Park, Jong-Chul;Na, June-Hee
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.4
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    • pp.195-215
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    • 2008
  • The scarcity is pervasive aspect of human life and is a fundamental precondition of economic behavior of consumers. Also, the effect of scarcity message is a power social influence principle used by marketers to increase the subjective desirability of products. Because valuable objects are often scare, consumers tend to infer the scarce objects are valuable. Marketers often do base promotional appeals on the principle of scarcity to increase the subjective desirability their products among consumers. Specially, advertisers and retailers often promote their products using restrictions. These restriction act to constraint consumers' ability th take advantage of the promotion and can assume several forms. For example, some promotions are advertised as limited time offers, while others limit the quantity that can be bought at the deal price by employing the statements such as 'limit one per consumer,' 'limit 5 per customer,' 'limited products for special commemoration celebration,' Some retailers use statements extensively. A recent weekly flyer by a prominent retailer limited purchase quantities on 50% of the specials advertised on front page. When consumers saw these phrase, they often infer value from the product that has limited availability or is promoted as being scarce. But, the past researchers explored a direct relationship between the purchase quantity and time limit on deal purchase intention. They also don't explored that all restriction message are not created equal. Namely, we thought that different restrictions signal deal value in different ways or different mechanism. Consumers appear to perceive that time limits are used to attract consumers to the brand, while quantity limits are necessary to reduce stockpiling. This suggests other possible differences across restrictions. For example, quantity limits could imply product quality (i.e., this product at this price is so good that purchases must be limited). In contrast, purchase preconditions force the consumer to spend a certain amount to qualify for the deal, which suggests that inferences about the absolute quality of the promoted item would decline from purchase limits (highest quality) to time limits to purchase preconditions (lowest quality). This might be expected to be particularly true for unfamiliar brands. However, a critical but elusive issue in scarcity message research is the impacts of a inferred motives on the promoted scarcity message. The past researchers not explored possibility of inferred motives on the scarcity message context. Despite various type to the quantity limits message, they didn't separated scarcity message among the quantity limits. Therefore, we apply a stricter definition of scarcity message(i.e. quantity limits) and consider scarcity message type(general scarcity message vs. special scarcity message), scarcity depth(high vs. low). The purpose of this study is to examine the effect of the scarcity message on the consumer's purchase intension. Specifically, we investigate the effect of general versus special scarcity messages on the consumer's purchase intention using the level of the scarcity depth as moderators. In other words, we postulates that the scarcity message type and scarcity depth play an essential moderating role in the relationship between the inferred motives and purchase intention. In other worlds, different from the past studies, we examine the interplay between the perceived motives and scarcity type, and between the perceived motives and scarcity depth. Both of these constructs have been examined in isolation, but a key question is whether they interact to produce an effect in reaction to the scarcity message type or scarcity depth increase. The perceived motive Inference behind the scarcity message will have important impact on consumers' reactions to the degree of scarcity depth increase. In relation ti this general question, we investigate the following specific issues. First, does consumers' inferred motives weaken the positive relationship between the scarcity depth decrease and the consumers' purchase intention, and if so, how much does it attenuate this relationship? Second, we examine the interplay between the scarcity message type and the consumers' purchase intention in the context of the scarcity depth decrease. Third, we study whether scarcity message type and scarcity depth directly affect the consumers' purchase intention. For the answer of these questions, this research is composed of 2(intention inference: existence vs. nonexistence)${\times}2$(scarcity type: special vs. general)${\times}2$(scarcity depth: high vs. low) between subject designs. The results are summarized as follows. First, intention inference(inferred motive) is not significant on scarcity effect in case of special scarcity message. However, nonexistence of intention inference is more effective than existence of intention inference on purchase intention in case of general scarcity. Second, intention inference(inferred motive) is not significant on scarcity effect in case of low scarcity. However, nonexistence of intention inference is more effective than existence of intention inference on purchase intention in case of high scarcity. The results of this study will help managers to understand the relative importance among the type of the scarcity message and to make decisions in using their scarcity message. Finally, this article have several contribution. First, we have shown that restrictions server to activates a mental resource that is used to render a judgment regarding a promoted product. In the absence of other information, this resource appears to read to an inference of value. In the presence of other value related cue, however, either database(i.e., scarcity depth: high vs. low) or conceptual base(i.e.,, scarcity type special vs. general), the resource is used in conjunction with the other cues as a basis for judgment, leading to different effects across levels of these other value-related cues. Second, our results suggest that a restriction can affect consumer behavior through four possible routes: 1) the affective route, through making consumers feel irritated, 2) the cognitive making route, through making consumers infer motivation or attribution about promoted scarcity message, and 3) the economic route, through making the consumer lose an opportunity to stockpile at a low scarcity depth, or forcing him her to making additional purchases, lastly 4) informative route, through changing what consumer believe about the transaction. Third, as a note already, this results suggest that we should consider consumers' inferences of motives or attributions for the scarcity dept level and cognitive resources available in order to have a complete understanding the effects of quantity restriction message.

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CO2 Mineral Carbonation Reactor Analysis using Computational Fluid Dynamics: Internal Reactor Design Study for the Efficient Mixing of Solid Reactants in the Solution (전산유체역학을 이용한 이산화탄소 광물 탄산화 반응기 분석: 용액 내 고체 반응물 교반 향상을 위한 내부 구조 설계)

  • Park, Seongeon;Na, Jonggeol;Kim, Minjun;An, Jinjoo;Lee, Chaehee;Han, Chonghun
    • Korean Chemical Engineering Research
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    • v.54 no.5
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    • pp.612-620
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    • 2016
  • Aqueous mineral carbonation process, in which $CO_2$ is captured through the reaction with aqueous calcium oxide (CaO) solution, is one of CCU technology enabling the stable sequestration of $CO_2$ as well as economic value creation from its products. In order to enhance the carbon capture efficiency, it is required to maximize the dissolution rate of solid reactants, CaO. For this purpose, the proper design of a reactor, which can achieve the uniform distribution of solid reactants throughout the whole reactor, is essential. In this paper, the effect of internal reactor designs on the solid dispersion quality is studied by using CFD (computational fluid dynamics) techniques for the pilot-scale reactor which can handle 40 ton of $CO_2$ per day. Various combination cases consisting of different internal design variables, such as types, numbers, diameters, clearances and speed of impellers and length and width of baffles are analyzed for the stirred tank reactor with a fixed tank geometry. By conducting sensitivity analysis, we could distinguish critical variables and their impacts on solid distribution. At the same time, the reactor design which can produce solid distribution profile with a standard deviation value of 0.001 is proposed.